Disabled Clients Employed Pa. Workers, Not Co., Judge Says

Thursday, January 30, 2025

Walter Foster was quoted in a Law360 article discussing a Pennsylvania federal judge's ruling that determined Public Partnerships LLC (PPL) is not liable for the unpaid wages claimed by a group of home care workers. U.S. District Judge Jeffrey L. Schmehl found that while PPL handled fiscal management services, such as payroll and setting employment conditions, it was not involved in day-to-day supervision or decisions like hiring and firing. Therefore, it could not be considered the workers' employer.

The dispute began in 2017 when a home care worker accused PPL of failing to pay overtime. Although the Third Circuit reversed an earlier dismissal, Judge Schmehl ultimately ruled that the participant employers, not PPL, were responsible for hiring, supervising, and compensating the workers. The judge noted that while PPL managed records and had some authority over work rules, it did not control work schedules or pay and was not liable for the workers' unpaid wages. Walter added that "this decision should put to rest any remaining questions that the sole employer under these Pennsylvania programs is the disabled individual who gets to hire and supervise any workers of their choosing."

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